Crypto traders are anticipating Pepe, the popular meme coin, to achieve a market capitalization of $10 billion, surpassing Dogwifhat. According to a Polymarket poll, Pepe has a 66% chance of reaching this milestone before Dogwifhat.

Currently, Pepe has a market cap of $3.59 billion. To hit a $10 billion valuation, it would need to rise by 178% from its present level. Despite the challenging target, Pepe has already seen a 450% increase this year, making it a plausible goal. In contrast, Dogwifhat, valued at $1.8 billion as of August 9, needs to surge by 455% to reach the same valuation, having already gained 975% this year.

Meme coins like Pepe and Dogwifhat have benefitted from the strong performance of Bitcoin and the demand from retail traders. Small traders often prefer these tokens due to their lower prices compared to major cryptocurrencies like Bitcoin and Ethereum. The affordability allows for purchasing more tokens, and these meme coins have a higher chance of doubling in value compared to Bitcoin, which has a market cap solidly above $1 trillion.

“Meme coins like Pepe and Dogwifhat have shown significant growth this year, driven by Bitcoin’s performance and retail trading demand.”

In the past few months, cryptocurrencies have seen some pullback, but analysts believe there could be more upside this year. Grayscale expects Bitcoin to retest its all-time high if the US avoids a recession. In June, Michael Novogratz predicted that Bitcoin could rise to $100,000 if it breaks above the year-to-date high of $73,800. If this prediction holds, meme coins like Pepe and Dogwifhat may see further gains.

A potential catalyst for Pepe surpassing a $10 billion market cap is the Federal Reserve’s anticipated interest rate cuts. The CME Fed Tool forecasts a 0.50% rate cut in September, followed by two more 25 basis point cuts in the year’s final meetings. These cuts are expected to encourage investors to shift capital from lower-risk funds to riskier assets, including meme coins and speculative crypto projects.

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